You are on page 1of 10

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/339178131

Halal entrepreneurship from Maqasid-al-Sharia’h perspective: inseparable


concept for Halalpreneurs

Article  in  Food Research · February 2020


DOI: 10.26656/fr.2017.4(S1).S07

CITATIONS READS

4 1,099

2 authors:

Moha Asri Abdullah Md. Siddique E Azam


International Islamic University Malaysia International Islamic University Malaysia
96 PUBLICATIONS   426 CITATIONS    12 PUBLICATIONS   29 CITATIONS   

SEE PROFILE SEE PROFILE

Some of the authors of this publication are also working on these related projects:

small and medium enterprises in Muslim countries View project

Research Project for Master Degree View project

All content following this page was uploaded by Moha Asri Abdullah on 13 February 2020.

The user has requested enhancement of the downloaded file.


Food Research 4 (Suppl. 1) : 34 - 42
Journal homepage: http://www.myfoodresearch.com

MINI REVIEW
Halal entrepreneurship from Maqasid-al-Sharia’h perspective: inseparable
concept for Halalpreneurs
Abdullah, M.A. and Azam, M.S.E.
International Institute for Halal Research and Training (INHART), International Islamic University
Malaysia (IIUM), 53000 Gombak, Malaysia
Article history: Abstract
Received: 8 August 2019
Received in revised form: 26
October 2019
Entrepreneurship has become one of the vital activities for economic development. It is
Accepted: 15 December synonymous with job creation, innovation, improvement in the societal well-being and
2019 economic growth in developed and developing countries alike. There is great interest in
Available Online: 10 entrepreneurship globally as well as in Malaysia. Over the past few years, many
February 2020
individuals, as well as families, are actively engaged with the small business. Also, in light
Keywords: of the 2013 GEM study, 12.7% of Americans are effectively occupied with beginning a
Halal, business or are the proprietor/director of a business that is under three years of age.
Entrepreneurship, Simultaneously, the Halal industry, that represents the global Islamic economy, is the
Maqasid-al-Shariah,
Halalpreneur, fastest-growing market in the world with $2.3 trillion market value. Halal entrepreneurs
Halalpreneurship (Halalpreneurs) are the major contributors to this achievement as they constitute a
significant portion of the total establishment in most of the Muslim countries. That is the
DOI:
https://doi.org/10.26656/fr.2017.4(S1).S07
reason Entrepreneurship has turned into a conventional term that depicts a wide range of
practices that include being innovative, devilish and tricky. Entrepreneurship has been
defined by many scholars, researchers, industry players, and academicians globally which
have also been perceived in the same way by most of the economies around the world.
However, the Islamic economy looks at the concept of ‘entrepreneurship’ in a different
way and perceives it as ‘Halalpreneurship’. To define entrepreneurship in the halal
industry, although, the term ‘Halalpreneurship’ is being used, surprisingly the term has
not been defined properly yet. It is essential for the Muslim entrepreneurs to have a proper
understanding of Halalpreneurship from Maqasid-al-Shariah perspective. Such point of
view is crucial to justify the term in the Halal industry and differentiate from conventional
entrepreneurs. On this context, this paper provides concept and definition of
Halalpreneurship justifying from the perspective of Maqasid-al-Sharia’h. It also
identifies the differences between Halalpreneurs and entrepreneurs using secondary
resources available in the forms of literature, research papers, journal papers, articles,
conference papers, online publications, etc. The findings of the study will clarify the
concept of Halalpreneurship from Maqasid-al-Sharia’h perspective and recognize
Halalpreneurs distinguished from conventional entrepreneurs.

1. Introduction many scholars, researchers, and organizations because of


its significant contribution to the economy and society.
Islam bases its communities on principles that Simultaneously, it has been explained from a different
distinguish it from other systems. Islam integrates perspective by different researchers to integrate high
construction and laying the sound foundations: standards of ethics because of some big financial scandals,
contractual, economic, political and social. All of them are recently (Oukil, 2013). Interestingly, Emami and Nazari
a coherent and cohesive structure that helps the (2012) argued that entrepreneurs who have higher faith
community to achieve the best results. The Qur’an not and commitment to their religion are more ethical in their
only permits but encourages business, trading, and business conduct. However, all these ethical guidelines
entrepreneurship. For Muslims, business and and business conduct behavior in entrepreneurship have
entrepreneurship are considered to be the high esteem as it been revealed in Islam 1400 years back through the
was also the profession of the Prophet (PBUH) (Solaiman Prophet (PBUH). All it requires is to do some critical
and Yasmin, 2012). Entrepreneurship has been defined by investigation and analysis of the different source of
*Corresponding author. eISSN: 2550-2166 / © 2019 The Authors. Published by Rynnye Lyan Resources
Email: mosri@iium.edu.my
35 Abdullah and Azam et al. / Food Research 4 (Suppl. 1) (2020) 34 - 42

Islamic law. Every business activity for any economy are comprised of a research paper, thesis, journal articles,
based on three concepts in Islam, namely livelihood (al- books, explanation of Al-Quran and Hadith, online
MINI REVIEW

rizq), permissible (Halal), and prohibited (Haram) which articles, and secondary data from different statistical
are also founded by the five objectives of Maqasid-al- website and research papers.
Shariah (Faizal et al., 2013). Global halal industry, which
also represents the global Islamic economy, has been Adopting the methodology, as mentioned above, the
identified as the fastest-growing market in the global following sections of the paper start with reviewing the
economy as the consumers around the world are literature on the definition of entrepreneurship and
becoming aware of the concept ‘halal’ which is not Halalpreneurship followed by the review of
anymore confined to food only (Thomson Reuters, Halalpreneurship from Maqasid-al-Shariah perspective.
2018). The industry is growing at 20% per year Additionally, before drawing the conclusion, the paper
estimating a value of US$560 billion (Elasrag, 2016). As discusses the differences between Halalpreneurs and
of 2017, the total estimated value of the global halal entrepreneurs by reviewing literature from different
market was US$4.54 trillion and expected to reach aspects.
US$9.71 trillion by 2025 (Thomson Reuters, 2018). The
joining of moral qualities alongside religious qualities 3. Review on definition
opens up the limit of the halal industry from 2.8 billion To achieve the objectives of the study this part of
Muslim shoppers to non-Muslim customer also around this paper reviews the works of literature to provide a
the globe. comprehensive definition of Halalpreneurship or halal
Therefore, it is the essence of time for all entrepreneurship. It starts with reviewing the
entrepreneurs, especially Muslim entrepreneurs, to know conventional definition of entrepreneurship in brief
the concept of Halalpreneurship and looking into it followed by reviewing the definition of
through Maqasid-al-Shariah perspective. Such point of Halalpreneurship.
view of Halalpreneurship explains how Halalpreneurs 3.1 Entrepreneurship
differ from conventional entrepreneur, what, how and for
whom to produce in the economy, who are the Entrepreneurship stems from the originates from the
stakeholders, what are the motivations, and what is the French word entreprendre signifying 'to embrace or to
scope of knowledge in Halalpreneurship? On this take in one's very own hands. Business enterprise can be
regard, the aim of this paper is to investigate the history depicted as a procedure of activity a business person
of entrepreneurship in Islam and clarifies the concept and attempts to build up his venture. It is a creative activity
definition of Halalpreneurship. Another objective is to that is based on the ability to create and establish
justify Halalpreneurship through Maqasid-al-Shariah something from nearly nothing. Entrepreneurs are risk-
perspective as an inseparable concept for Halalpreneurs. takers who react to opportunities, bear uncertainty and
Simultaneously, it tries to differentiate Halalpreneurs balance the supply and demand in the specific market
from conventional entrepreneurs by examining the (Kuratko, 2016). As per Peter Drucker, Entrepreneurship
different aspects of entrepreneurship from Maqasid-al- is characterized as 'a methodical advancement, which
Shariah view. This paper fulfills the urgent demand of comprises in the deliberate and sorted outlook for
the global Halal industry, as stated in the report Thomson changes, and it is the orderly examination of the open
Reuters (2018), clarifying the concept and definition of doors such changes may offer for financial and social
Halalpreneurship which will help the business ventures development.' The field of entrepreneurship is likewise
in the Halal industry differentiate themselves from characterized by Shane and Venkataraman (2000) as the
conventional entrepreneurs. This perspective will investigation of chances to make future item and
motivate them to subscribe for more halal business and administrations including the methodology, the general
contribute to the Islamic economy. It can also be useful population in control and what is being delivered.
for policymakers providing effective and suitable Rindova et al. (2009) have characterized business
policies to develop training programs on entrepreneurship as the endeavors to achieve novel
Halalpreneurship, halal marketing and other areas of cultural, social, monetary and institutional conditions
Halal industry. through the activities of an individual or gathering of
individuals. Low and MacMillan (1988), Gartner, (1988)
and Lumpkin and Dess, (1996) defined entrepreneurship
2. Methodology
as the creation of new enterprises or organizations.
To achieve the objectives of this paper, content Entrepreneurship may also mean taking advantage of
analysis was adopted. The content analysis comprised of opportunities by novel combinations of resources in
an extensive literature review from previous studies that ways which affect the marketplace. This is regardless of

eISSN: 2550-2166 © 2019 The Authors. Published by Rynnye Lyan Resources


Abdullah and Azam et al. / Food Research 4 (Suppl. 1) (2020) 34 - 42 36

the resources that the entrepreneurs are controlling. majority of the capacities, exercises, and activities
related to the view of chances and formation of
The word ‘entrepreneur’ immediately conjures up

MINI REVIEW
associations to seek after them. The halal innovative
images of business icons like Steve Jobs or Bill Gates. procedure is a complex phenomenon; be that as it may,
While these rich, famous and successful individuals can this procedure is significant in comprehension
be inspirational for some, most of us would find it halalpreneurial development.
difficult to associate our own lives, personalities or
abilities with them. Business Dictionary characterizes Halalpreneurship is an essential part of the Islamic
enterprise as the limit and eagerness to create, compose religion. Moreover, it is considered as jihad fi sabilillah
and deal with a business adventure alongside any of its (done in earnest in order to uphold thi teachings of Islam
dangers so as to make a benefit. In Investopedia, an and elevate its symbol), to be a source of livelihood to
entrepreneur is a person who, as opposed to filling in as a the community (produce goods, provide services, create
worker, establishes and maintains a private company, jobs, eradicate poverty, eradicate social, criminal and all
expecting every one of the dangers and prizes of the wrongdoing. On top of that, worship and righteous deeds
endeavor. The business entrepreneurship is normally are deeds to bridge the relationship between mankind
observed as a trend-setter, a wellspring of new thoughts, and Allah Subhanahu Wa Taala (SWT) (Kedah et al.,
products, administrations, and business/or methods. 2015).
Also, in financial matters, business enterprise joined with
the land, work, regular assets, and capital can deliver a Imam Al-Ghazali has written in his Ihya Ulum al-
benefit (Schaper et al., 2011). Din:

It has been realized from the above reviews of It is compulsory upon every Muslim who is involved
entrepreneurship that the definition is more or less with it (business and trading), to study the laws of buying
similar. The conventional entrepreneurs are more and selling because the seeking of knowledge is a duty
focused on market demand and supply while taking risk upon every Muslim. When we say the seeking knowledge
and uncertainty (Kuratko, 2016). They intend to make is such a duty, we also mean knowledge of all those
social development deliberately without considering the affairs of trade and business. Those in service and
specific need and specific target consumer i.e. focused employment should know the laws applying to them and
on making a profit (definition of Peter Drucker, and those who work for a living should know the laws (as
Shane and Venkataraman). Additionally, entrepreneurs related to them), no matter what occupation he is in. In
are to take the advantages of available resources only such a way, they will become aware of the things which
while affecting the market in case of scarcity of the cause their acts to be illegal according to the shari'a;
resources (Lumpkin and Gartner definition). Moreover, and they will be able to avoid these acts. When there are
scholars have tried to make ethical integration to the some rare or uncommon cases or instances which one
definition for entrepreneurs to become honest, socially does not know whether is halal or haram, one should not
responsible, and not to focus making profit only by any act upon it until such time he has the opportunity to
means (Emami, 2012; Oukil, 2013). Therefore, the inquire the matter from the learned scholars (of Islam).
following look into the definition of Halalpreneurship to From the above quotation it is very clear about the
see the differences from the conventional one. ethical and moral responsibilities prescribed in Islam for
3.2 Halalpreneurship any Muslim entrepreneur (Halalpreneur). Moreover, it is
the consensus of the Muslim scholars that is not
Halalpreneurship is holistic in Islam entails permissible for a Muslim person to start an affair until he
entrepreneurship as an element that is not separated from or she identifies what Allah has obtained in the matter.
Islam. Halalpreneurship is the entrepreneurship that is This is also applicable for those who would like to be
within Shari’ah’s scope (Aqidah, Fiqh, Akhlaq) so that engaged in business and trading, or accept an offer from
its activities are not alienated from obligations in Islam. an employer, which to make a loan or invest. Halal
Halalpreneurship includes the role of the human being earnings bring the love of Allah SWT, enlightenment,
as a Khalifah (Caliph) in the world, to develop and knowledge, righteous thoughts, courage and
prosper the world; means the activities of attentiveness. A Halalpreneur is supposed to take care of
entrepreneurship should contribute to the good and these matters in his/her Halalpreneurship.
prosperity of society, Ummah and humanity.
Additionally, Halalpreneurship also avoids any
Halalpreneurship is a recently created idea that joins matter which is haram (not permissible) in Islam.
halal advancement to business exercises that are Halalpreneurs perceive the haram (prohibited) earnings
executed as halalpreneurial activities. It includes the as irreligiousness, bring overwhelmed by one’s own

eISSN: 2550-2166 © 2019 The Authors. Published by Rynnye Lyan Resources


37 Abdullah and Azam et al. / Food Research 4 (Suppl. 1) (2020) 34 - 42

desire, the absence of courage and destruction of one’s limits in [the matter of] taking life. Indeed, he has
faith in Allah SWT. It is mentioned in Al-Quran- been supported [by the law]”. (Al-Qur’an, 17: 33)
MINI REVIEW

3. Protection of Lineage or Offspring- Islam strongly


“O you who have believed, fear Allah and give up
recommend people to get married. It also prohibits
what remains [due to you] of interest if you should be
any sexual relationship before marriage. This applies
believers”. (Al-Qur’an, 2: 278)
during traveling where Muslim-friendly tourism
From the above reviewed works of literature, comes into action.
references from Quran and Hadith, and quotation of 4. Protection of Intellect or Faculty of Reason, and,
Islamic scholars, the concept of Halalpreneurship is well lastly- Any material that might damage the brain and
defined and understood, which was the first objective of intellectual ability is totally prohibited in Islam, like
this study. The following section looks into this concept intoxicant and alcohol. The same applies to produce
of Halalpreneurship from maqasid-al-Shariah and trading with them.
perspective. 5. Protection of Material Wealth or Property- Islam
liberates people to seek their wealth in a positive
4. Review of Halalpreneurship from Maqasid-al- manner. Therefore, there are few unjust transactions
Shariah perspective that have been prohibited in Islam such as usury
As section-3 provides the definition and a clear (riba). Also, there is exacting discipline for the
concept of Halalpreneurship, this section of the paper individuals who take somebody's property.
tries to look Halalpreneurship from the perspective of “Allah destroys interest and gives increase for
Maqasid al Shariah. Firstly, it reviews on Maqasid al charities. And Allah does not like every sinning
Shariah and its objectives. Secondly, a short review of disbeliever”. (Al-Qur’an, 2: 276)
Halal and Haram is done. And finally, the definition of Besides having a clear understanding and knowledge
Halalpreneurs is provided based on the literature and of Maqasid Shari'ah, Halalpreneurs should also know
interpretations. about what is permissible (halal) and what is not
permissible (haram) while conducting their businesses.
4.1 Maqasid-al-Shariah
4.2 Halal and haram
Halalpreneurship is the profession of earning a
livelihood, living life on earth, and serving the whole Halal-or in some contexts ‘Halalan’- is an Arabic
ummah while representing oneself as a good Muslim. On word which means “permissible”, “legal” or “allowed”.
this regard, Halalpreneurs must know the rulings of Prescribed as a guideline for Muslims to observe in their
Islam and the objectives of these rulings. The Arabic daily practice, the concept of halal or permissibility
word Maqasid [singular maqsid] implies the meaning of includes all aspects of justice and equality for all,
objectives or purposes and when it refers including acceptability by non-Muslims.
to Shari’ah [Maqasid Al Shari’ah] it specifically means
the goals and purposes of Shari’ah (ibn Ashur, 2006). Tayyib-or in some contexts ‘Tayyiban’- means good,
wholesome or safe. Muslims are obliged to consume safe
Most Muslim researchers are of the assessment that a and non-harmful goods.
definitive goal [Maqasid Shari'ah] which are a need
[daruriyyah] for humankind to have the option to live “O you who have believed, do not prohibit the good
calmly in this world, as per al-Quran and al-Sunnah, things which Allah has made lawful to you and do not
incorporate five fundamental zones: transgress. Indeed, Allah does not like transgressors
(87). And eat of what Allah has provided for you [which
1. Protection of Religion-the leader must be able to is] lawful and good. And fear Allah, in whom you are
pay attention to all the needs and financial support believers (88).” (Al-Qur’an, 5: 87–88)
for all religion, not only Islam, and provide and
protect their rights to practice their ritual. This is Haram is the antonym to Halal. The word haram
applied to develop a Muslim-friendly ecosystem. means ‘prohibited’ and ‘unlawful’. In business conduct,
any activity that includes Haram foods or ingredients is
2. Protection of Life- In Islam, homicide is not
prohibited to every Muslim including that product or
permitted. The same applied to not consume or
service. While deciding on halal and haram for anything
produce harmful products and goods.
there are certain principles in Islam. For example,
“And do not kill the soul which Allah has forbidden, Natural permissibility of things created by GOD (Allah
except by right. And whoever is killed unjustly - We SWT), unless explicitly forbidden; The decision of halal
have given his heir authority but let him not exceed and haram is the right of Allah SWT (Al-Qur’an, 5: 87–

eISSN: 2550-2166 © 2019 The Authors. Published by Rynnye Lyan Resources


Abdullah and Azam et al. / Food Research 4 (Suppl. 1) (2020) 34 - 42 38

88); What is halal is enough and what is haram is prayer has been concluded, disperse within the land and
redundant; Islam does not limit the Muslim’s options, seek from the bounty of Allah, and remember Allah often

MINI REVIEW
instead it makes wider choices and alternatives. For that you may succeed (10). (Al-Qur’an, 62: 9-10)
instance, Allah SWT prohibits riba (usury) but
encourages the profitable trade; Falsely representing This encourages Muslims to be engaged in business
haram as halal is prohibited (Sahih al-Bukhari, 5590); and trading while not neglecting the ibadah. Hence, the
Good intention does not make the haram acceptable guiding principles of Halalpreneurs are from the Al-
(Sunan Abi Dawud, 59); Doubtful (shubhah) should be Quran and Hadith that are in coordination with the five
avoided as mentioned in the Hadith (Jami` at-Tirmidhi, objectives of Maqasid-al-Shari’ah. The first objective of
1205) that is highlighted earlier in this section; Protecting the Religion can be addressed by coming up
Compelling necessity (darurah) dictates exception; with ideas, products, and services that facilitate the
Islam is not unmindful to the necessities of life, to their practice of religion, calling to it, teaching it, providing
magnitude, nor to human weakness and capacity to face freedom of religion and other incentives for proper
them. Therefore, on the occasion of necessity, the spiritual development (Kayed and Hassan, 2011).
prohibition is removed to suit the situation (Al-Qur’an, Halalpreneurs aims to achieve the second objective
2: 173). by enhancing human life, protecting it, avoiding harmful
Now, that the objectives of Maqasid Shari'ah, as or toxic products. Simultaneously, Protection of Lineage
well as halal and haram, have been explained, or Offspring can be addressed by encouraging marriage,
entrepreneurs can be defined as Halalpreneurs while forbidding haram relationships, selecting a healthy
fulfilling the Shariah requirements and other Halal family to minimize dangerous diseases, healthy
standards, which are also set in line with Shariah, for upbringing. Halalpreneurs can also play a significant
respective countries. role in the development of education, the prohibition of
intoxicant and alcohols that might damage the brain and
4.3 Halalpreneurs intellectual ability. Finally, Protection of Material
Wealth or Property- To be preserved and enriched
Based on the reviewed works of literature and through opening alternative sustainable ways for its
analogy of different references from Quran and Hadith as generation, utilization, distribution and growth on one
mentioned earlier sections of this paper, it can be hand and also blocking means that hinder its generation,
asserted that any Muslim entrepreneur who produces circulation, consumption, and growth. The entrepreneur
goods and services that follow and comply with Maqasid focuses on the profit and the county law in the practice
-al-Shari’ah is known as Halalpreneurs. However, Non- of their business. The five pillars are not propriety, nor in
Muslim entrepreneurs are allowed to be Halalpreneurs the description of the scope. While on the other hand,
by Islamic scholars based on maslahah ‘Public Interest’ Halalpreneurs must fulfill these pillars first for their
for the benefit of Ummah and mankind, if they comply products or services to be halal.
with the Sahri’ah laws in the products and services
provided. The concept of and definition of both
Halalpreneurship and Halalpreneur have been explained
Halalpreneurs are ‘khalifah’ and have the till this point of this paper. Moreover, a close observation
responsibilities to develop prosperity and see business as of the concept Halalpreneur was also made from the
part of ‘ibadah’ or good deed through the fulfillment of perspective of Maqasid-al-Sharia’h. The following
fardhu kifayah (communal obligation). While the section provides more understanding of
Western business person is driven towards enterprise for Halalpreneurship by identifying the differences from
the most part independent from anyone else intrigue and conventional entrepreneurs and stating the characteristics
the longing for individual benefit, the Muslim business of Halalpreneurs.
visionary begins a business with the expectation of
satisfying The Almighty Allah SWT (Kedah et al., 2015).
5. Halalpreneurs VS entrepreneurs
In other words, a Halalpreneur regards his or her The holistic characteristics and objectives of
activities as ibadah in the frame of earning a halal living, Halalpreneurs make them unique and different from
as declared in Surah Al-Juma’ah: entrepreneurs. With the differentiated motives and aims,
O you who have believed, when [the adhan] is called Halalpreneurs are expected to manage their venture
for the prayer on the day of Jumu'ah [Friday], then successfully and demonstrate a better performance
proceed to the remembrance of Allah and leave trade. regarding trust and belief towards Islam (Hamid and
That is better for you if you only knew (9). And when the Sa’ari, 2011). Halalpreneurs can be deviated raising a
number of questions; such as, what to produce, how to

eISSN: 2550-2166 © 2019 The Authors. Published by Rynnye Lyan Resources


39 Abdullah and Azam et al. / Food Research 4 (Suppl. 1) (2020) 34 - 42

produce, for whom to produce, what are the motivations, Halalpreneurs decide how to produce efficiently
and what are the personal characteristics of keeping in view their profit and motive. Resources are
MINI REVIEW

Halalpreneurs? plentiful. If the resources are scarcity, it is either ill-


advised utilization of assets, unequal dissemination of
5.1 What to produce assets, or absence of learning.
Entrepreneurs offer and produce what people want That is why Halalpreneur should have the proper
and make profits, while on the other hand, Halalpreneurs knowledge in both Shari’ah and business to be able to
produce what is permissible (halal) by Shari’ah and is operate efficiently. The Prophet (PBUH) said,
needed by humanity. Goods and services are based on
product priorities such as necessities, comfort, luxury, "A time will come when one will not care how one
not harmful and non-haram. In other words, gains one's money, legally or illegally." (Sahih al-
Halalpreneurs produce what complies with Maqasid-al- Bukhari 2067)
Shari’ah priorities and classifications:
5.3 For whom to produce
Daruriyyat (essentials): Required and considered as
essential for the establishing of prosperity in this world The target customer or serving consumer for
and the Hereafter. Halalpreneurs is an important aspect to differentiate
from entrepreneurs. Entrepreneurs offer their services
Hajiyyat (needs): Serve as complementary to the
and products based on the market’s demand. There is no
essentials. Without the needs, people will face hardship.
particular group to be served as long as the profit is
Nonetheless, non-presence of the requirements won't
obtained in the process. Halalpreneurs on the other hand,
make total disturbance of the typical request of life.
have the view of production to fulfill human needs to
Tahsiniyyat (embellishments): Relate to matters which discover new horizons and uncover new opportunities
bestow enhancement in the society and guide to an for the benefit of humankind. A Halalpreneur realizes
improved life. that his or her prime duty and responsibility is to
Mubahat (Luxury): It is not prohibited but not a basic distinguish between what is halal and what is haram as
need cannot be own by everyone determined by Shari’ah. Only halal good, therefore, can
Haram (prohibited): It is not allowed and should not be be produced. By complying Maqasid-al-Shari’ah
produced nor consumed. priorities, everyone in the society is provided with basic
needs by the state, and Halalpreneurs shall provide
For instance, a halalpreneur cannot be selling wine
goods and services according to product priorities such
and anyone who does is deported from the mercy of
as necessities, comfort, and luxury. However, as
Allah SWT.
innovative and creative individuals, Halalpreneurs
5.2 How to produce should not focus on luxury goods and services before
covering the needs of Muslim Ummah and Humanity.
Entrepreneurs seek efficiency and productivity in
their production line. They desire maximized profits and In 1955, Ray Kroc established the McDonald's®
any cost and using any approach. On the other side, we Corporation and opened the primary café in Des Plaines,
see the awakened soul in the Halalpreneurs, as they do Illinois. Today, there are more than 33,000 McDonald's®
not approach the haram product nor the process to make cafés in 119 nations. Beam Kroc kicked the bucket in
it. They, however, can naturally aim to maximize their 1984 yet his heritage is particularly alive. His example of
profit. In other words, the process of production and overcoming adversity proceeds with McDonald's®
generating the income and the profit must be halal. This groups of workers, franchisees, and suppliers. His
is where we can distinguish the two categories. This is responsibility, devotion, and accomplishments keep on
certainly by complying to Halalan Tayyiban Concept living on at McDonald's® cafés over the world. In 1995,
and Standards. For instance: McDonald's® is the primary Quick Service Restaurant in
Malaysia to get the Halal Certification from JAKIM.
The item does not contain any parts or results of And in 2016, Saudi Arabia’s Lionhorn Pte Ltd becomes
creatures that are non-halal to Muslims or results of the owner of McDonald’s® Malaysia through the
creatures which are not butchered by Shari'ah. McDonald’s® Developmental Licensee franchising
During its planning, handling, bundling, stockpiling structure. Although the owner was non-Muslim, the
or transportation, the item is physically isolated from restaurant chain is Halal-certified and is a good example
whatever another item that does not meet the of Halalpreneurship, providing food for all levels in
prerequisites of Shari'ah. society.

eISSN: 2550-2166 © 2019 The Authors. Published by Rynnye Lyan Resources


Abdullah and Azam et al. / Food Research 4 (Suppl. 1) (2020) 34 - 42 40

5.4 What are the motivations 5.6 Characteristics of Halalpreneurs

The conventional entrepreneur is seeking profit A number of religious, moral and ethical

MINI REVIEW
before everything else. Though profit maximizing is not characteristics, that are developed from the Islamic
forbidden in Islam, profit is not the main motive of values, significantly distinguishes Halalpreneurs from
Halalpreneurs. Halalpreneurs should look for God's entrepreneurs. Firstly, Takwa is the most important
favor over every other factor. A Halalpreneur performs attribute of Halalpreneurs that lead them towards
business isn't exclusively for the benefit, yet most success making lots of profits through their business
importantly, to satisfy the 'fardhu kifayah'. Subsequently, activities. In line with this faith, Halal becomes the first
Halalpreneurs ought to vary from different business priority for Halalpreneurs. As Allah recommends
people in their thought processes and points. It is trusted consuming Halal (Al Quran 5:88) as well as earn Halal
that on the off chance that they can deal with their (Al-Quran 2:168). Halalpreneurs are also expected to
business effectively, they ought to likewise have great behave responsibly both for consumption and expense as
execution as far as confidence and conviction towards business activities are influenced by the prescription of
Allah SWT, as they are aiming for al-Falah in the not wasting by Allah (Al-Quran 7:31). Another
hereafter (Soltanian et al., 2016). Business in Islam is characteristic of Halalpreneurs was mentioned by Faizal
exceptionally respected, and Islam gives the motivators et al. (2013) in his study is to prioritize worship to Allah
as well as the helpful system for financial and enterprise SWT which was also identified Sadeq (1977) on the basis
advancement in the light of the elucidation of the of Quranic verses where entrepreneurship (worldly
Qur'anic refrain and on the numerous customs of the affairs) is encouraged but after praying (Al-Quran 62:10,
Prophet Muhammad (PBUH). Allah SWT says: 15:67). While prioritizing worship to Allah SWT
Halalpreneurs become trustworthy in terms of both
“And We have made for you therein means of living social and their business conduct. Thus, trustworthy is
and [for] those for whom you are not providers.” (Al- another characteristic of Halalpreneurs which has been
Qur’an, 15:20) mentioned by the Prophet (PBUH) himself. The Prophet
5.5 Who are the stakeholders (PBUH) encouraged truthful and trustworthy merchant to
be with him together with martyrs on the day of
In the conventional entrepreneurship, stakeholders Judgement (Al-Tirmidhi, 14: 1213).
include the supply chain: owners, suppliers,
manufacturers, workers, financiers, customers, Halalpreneurs are also philanthropists. They
community and the whole nation affected. Islam looks at contribute to social welfare by providing Zakat, which is
the ownership differently from either capitalism or one of the five obligations for all Muslims. Being
socialism. For instance, in capitalism, there is concern about social welfare through charity activities
unrestricted private ownership of property that leads to and providing Zakat has been stated in many places in
monopolies. While socialism has no private ownership Quran (Al-Quran 2:3, 43, 83, 177, 7:156, 19:31, 19:55,
at all. 21:73, 22:35, 41, 78, 23:4, 27:3, 30:39, 31:4, 41:7 and
more). Therefore, Halalpreneurs are expected to
From the perspective of Maqasid-al-Shari’ah, Islam consider themselves in the position of an Islamic
protects the right of property without interference with business organization and fulfill their philanthropic
the good of community ‘maslahah’ and while the responsibility as prescribed in Sharia’h.
property is achieved in a halal way. Having said that, the
concept of stakeholders in Islam recognized that Last but not the least, an additional requirement is
everything belongs to Allah SWT and He distributed the the knowledge of Islam and Shari’ah concept, halalan
wealth and prosperity among His creatures with wisdom tayyiban concept and the categories of Maqasid-al-
and reasoning that we, human, do not understand. And as Shari’ah for an individual be a Halalpreneur. In other
khalifah, we are entrusted to manage and develop the words, a halalpreneur is not necessary a Muslim, as non-
resources that Allah SWT has created and offered Muslims could be Halalpreneurs if they possess the
according to the Maqasid-al-Shari’ah. In this context, required knowledge. For instance, the halal concept
stakeholders in Halalpreneurship are the same as the should be implemented in the procurement process,
conventional one, with the focus of all holders being production, packaging, storage, logistics, and others. In
under the umbrella of the provision of Allah SWT. this manner, halal learning is crucial to be one of the
Therefore, Halalpreneurs here is fulfilling the ‘fardhu criteria for Halalpreneurs. Non-Muslim Halalpreneurs is
kifayah’ by serving the ummah and humanity and allowed under the condition of public interest
provide extra attention to all details of the supply chain ‘Maslahah’. Maslahah is an Arabic expression that, in
from manufacturing to the end products with the Ihsan. law and social morals, signifies "the basic social great or

eISSN: 2550-2166 © 2019 The Authors. Published by Rynnye Lyan Resources


41 Abdullah and Azam et al. / Food Research 4 (Suppl. 1) (2020) 34 - 42

welfare." Maslahah in contrast to its antonym, mafsadah, studies. Future study may enhance the concept
which means "that which causes or constitutes harm." As ‘Halalpreneurs’ itself with detail deliberation.
MINI REVIEW

indicated by authentic and legitimate writings, it was the


second caliph, 'Umar ibn al-Khattab (r. 634-644), who
References
connected the standard of seeking after open approaches
that add to the benefit of everyone over those that don't. Emami, M. and Nazari, K. (2012). Entrepreneurship,
Imam al-Ghazali and other medieval scholars held that, religion, and business ethics. Australian Journal of
while the general welfare of Muslims regarding Business and Management Research, 1(11), 59-69.
requirements and enhancements ought to be connected to Faizal, P.R.M., Ridhwan, A.A.M. and Kalsom, A.W.
shari'ah through lawful thinking, what was esteemed in (2013). The entrepreneurs characteristic from al-
setting to be important to the welfare of the network Quran and al-Hadis. International Journal of Trade,
required no other support for usage (Kamaluddin et al., Economics and Finance, 4(4), 191. https://
2005). doi.org/10.7763/IJTEF.2013.V4.284
Gartner, W.B. (1988). “Who is an entrepreneur?” is the
6. Conclusion wrong question. American Journal of Small
Business, 12(4), 11-32.
Entrepreneurship is the vital component of any
economy has been defined by many scholars and Hamid, S.A. and Sa'ari, C.Z. (2011). Reconstructing
institutions. Some of the characteristics of an entrepreneur's development based on al-Qur'an and
entrepreneur have been identified in this study are risk- al-Hadith. International Journal of Business and
taker, innovator, opportunity seeker, an agent to Social Science, 2(19).
economic, social, and cultural changes. However, in Ibn Ashur, M. al-T. (2006). Ibn Ashur Treatise on
Islamic economy entrepreneurship has been viewed from Maqasid al-Shari’ah. London, UK: Biddles Ltd.
the perspective of Maqasid-al-Shariah. Integrating the Kamaluddin, A.K., Manan, N. and Suyurno, S.S. (2005).
five principles of Maqasid-al-shariah into Islamic Entrepreneurship. Shah Alam: Pusat
entrepreneurship defines Halalpreneurship and reveals Penerbitan Universiti (UPENA).
the characteristics of Halalpreneurs. Halalpreneurs are Kayed, R.N. and Hassan, M.K. (2011). Islamic
khalifah and are responsible to develop the world where Entrepreneurship. New York: Routledge.
Maqasid-al-Shari’ah is the umbrella of all
Kedah, Z., Adamu, I.M., Kadir, M.A.B.A. and Anwar,
Halalpreneurs. Halal products and services are the prime
M.A. (2015). Effect of business Jihad on
goals for being Halalpreneurs aiming to please Allah
Entrepreneurs’ ethical behavior and corporate social
SWT before any profits. In business production,
responsibility: A qualitative study. International
Halalpreneurs are unique and differ from conventional
Journal of Business and Globilisation, 15, 425-442.
entrepreneurs in terms of what to produce, how to
produce, and for whom to produce. Unlike entrepreneurs, Kuratko, D.F. (2016). Entrepreneurship: Theory,
the motivation that works for someone to become process, and practice. USA: Cengage Learning.
Halalpreneur is to have the blessings of Allah SWT Low, M.B. and MacMillan, I.C. (1988).
which will bring reward both in this world and the world Entrepreneurship: Past research and future
hereafter. Moreover, Halalpreneurs possess the challenges. Journal of Management, 14(2), 139-161.
characteristics of Takwa, trustworthiness, prioritizing Lumpkin, G.T. and Dess, G.G. (1996). Clarifying the
Halal products and services and worship to Allah SWT, entrepreneurial orientation construct and linking it to
philanthropic responsibility, and knowledge of both performance. Academy of Management Review, 21
business and shariah. Entrepreneurship that does not (1), 135-172.
comply with Shari’ah is not Halalpreneurship. Oukil, M.S. (2013). Entrepreneurship and entrepreneurs
Therefore, Halalpreneurs are different from in an Islamic context. Journal of Islamic and Human
conventional entrepreneurs regarding their purpose, and Advanced Research, 3(3), 111-131.
intention of business, and the religious, moral, and
Rindova, V., Barry, D. and Ketchen Jr, D.J. (2009).
ethical characteristics they possess. In conclusion,
Entrepreneuring as emancipation. Academy of
Maqasid-al-Shariah is the ruling of every conduct of
Management Review, 34(3), 477-491.
human life based on the Quran and Hadith as primary
sources. Thus, this becomes an inseparable concept for Sadeq, A. (1997). Entrepreneurship development and
entrepreneurs to be justified as Halalpreneurs. An training: An Islamic perspective. Hamdard
extensive discussion and review on Maqasid-al-Shariah Islamicus, 20(4), 37-43.
were beyond the scope of the paper which has, however,
already been detailed out by a number of previous

eISSN: 2550-2166 © 2019 The Authors. Published by Rynnye Lyan Resources


Abdullah and Azam et al. / Food Research 4 (Suppl. 1) (2020) 34 - 42 42

Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B.


(2011). Entrepreneurship and small business (3rd

MINI REVIEW
Asia-P). Milton: John Wiley and Sons Australia, Ltd.
Shane, S. and Venkataraman, S. (2000). The promise of
entrepreneurship as a field of research. Academy of
Management Review, 25(1), 217-226.
Solaiman, M. and Yasmin, S. (2012). Entrepreneurship
development for rehabilitation of muslim youth–
investigating the role of Islamic Bank Bangladesh
Ltd. (IBBL). Business Management Dynamics, 1(9),
13.
Soltanian, M., Zailani, S., Iranmanesh, M. and Aziz,
A.A. (2016). Motivations of SME entrepreneurs to
become Halalpreneurs. Journal of Science and
Technology Policy Management, 7(2), 173–189.
Thomson Reuters. (2018). State of the Global Islamic
Economy Report 2018/19. Retrieved from Haladinar
website: https://haladinar.io/hdn/doc/report2018.pdf

eISSN: 2550-2166 © 2019 The Authors. Published by Rynnye Lyan Resources

View publication stats

You might also like